Scott v Federal Commissioner of Taxation [1966] HCA 48

High Court of Australia Windeyer J. Scott v Federal Commissioner of Taxation [1966] HCA 48

ORDER Appeal allowed. Commissioner to pay the taxpayer's costs. Case remitted to the Commissioner to reassess the tax payable in respect of the year ended 30th June, 1961, such assessment to issue upon the determination of appeal No. 46 of 1965.

Cur. adv. vult.

The following written judgment was delivered:—

Aug. 24 Windeyer J.

Leslie Gordon Scott (whom, following the terminology of the Income Tax Assessment Act, I shall call the taxpayer) appeals against an amended assessment of income tax dated 6th September 1963 in respect of his income for the year ended 30th June 1961. The question is whether a sum of £10,000, which the taxpayer received from one Mrs. Freestone, formed part of his assessable income.

The taxpayer in other proceedings appealed against the disallowance by the Commissioner of his claims that certain disbursements—£150 in the year ended 30th June 1959, £250 in the year ended 30th June 1960 and £250 in the year ended 30th June 1961—were allowable deductions as contributions to a superannuation fund. These objections involved a consideration of the affairs of two companies, Associated Provident Funds Pty. Limited and Belvidere Investments Pty. Limited, which had themselves appealed against assessments of income tax payable by them. All these matters, apart from the issue concerning the £10,000 that the taxpayer received from Mrs. Freestone, were much involved with one another. Therefore I, with the assent of the parties, heard at one hearing all the evidence relating to all the appeals covering several income tax years [1] . But the matter of the £10,000 received from Mrs. Freestone is not in any way involved with the other question. It was the subject of a separate appeal (No. 47 of 1965) and was dealt with at the hearing as a separate matter. I am therefore giving judgment in it now, although a final determination of the amount of the taxpayer's taxable income for the year ended 30th June 1961 must, as to £250, await the determination of his appeal No. 46 of 1965.